With the June rollover season officially getting underway this week, there should be strong demand for the large new issues scheduled for pricing in the primary as many investors are in need of fresh supply to reinvest their coupon, maturity, or redemption proceeds.
This week's calendar reflects a wide array of offerings from different sectors and from a variety of municipalities in both specialty and non-specialty states.
A two-pronged aviation revenue offering totaling $600 million from Miami-Dade County is one of the largest deals, and will arrive amid the heightened seasonal demand.
The offering on behalf of Miami International Airport, which is scheduled to be priced on Wednesday by Banc of America SecuritiesLLC,will consist of $435 million of revenue bonds subject to the alternative minimum tax and $165 million of non-AMT debt. Serial bonds are structured to mature from 2016 to 2028, as well as term bonds in 2033, 2038, and 2041. Both series of bonds are expected to have underlying ratings of A2 from Moody's Investors Serviceand A-minus from Standard & Poor's, and at press time on Friday the firm was awaiting final determinations on bond insurance, noting that enhancement from Financial Security Assurance Inc. or Assured GuarantyCorp. was possible.
Switching gears to the Midwest, a Chicago general obligation refunding totaling nearly $500 million is planned for pricing by Depfa First Albany SecuritiesLLC on Wednesday. The two-pronged deal consists of $377.2 million of tax-exempt GO refunding bonds and $121 million of taxable GOs. Both series are expected to be rated Aa3 by Moody's, AA-minus by Standard & Poor's, and AA by Fitch Ratings, and bonds are structured to mature from 2010 to 2037.
A pair of deals will also provide investors with a bevy of health care bonds this week, including a $407.9 million New York State Dormitory Authority revenue sale on behalf of Primary Care Development Corp.
The deal, a conversion of the authority's 2001 auction-rate securities to fixed rate, will be officially priced for institutions on Wednesday by Morgan Stanleyafter a two-day retail order period today and tomorrow. The structure and its ratings were not available at press time.
Also in the health care sector is a $250 million offering from the Allegheny County, Pa., Hospital Development Authority slated for pricing on Wednesday by manager RBC Capital Markets. The deal, which is being sold on behalf of the University of Pittsburgh Medical Center, is expected to carry ratings of Aa3 from Moody's, and AA-minus from Standard & Poor's and Fitch, and is structured to mature serially from 2009 to 2018. RBC was discussing the possibility of bifurcating some of the maturities for retail investors, but no further details were available by press time.
In higher education, the Massachusetts Health and Educational Facilities Authority will sell $333.7 million of natural triple-A rated revenue debt on behalf of Harvard University in a deal that is scheduled to be priced tomorrow by book-runner JPMorgan.
The two-pronged issue consists of $208.7 million of tax-exempt bonds in Series 2008 B, which matures in 2038, and $125 million of taxable bonds in Series 2008 C, which matures in 2018. The bonds have natural triple-A ratings from Moody's and Standard & Poor's.
The California Infrastructure and Economic Development Bank, meanwhile, will issue $326.1 million in a three-pronged deal scheduled for pricing on Wednesday by Banc of America. The bonds have underlying ratings of A2 from Moody's and A-plus from Standard & Poor's. The series come in three sizes: $198.1 million, $93.5 million, and $34.5 million.
Back in Florida, the Broward County School Board plans to sell $265 million of certificates of participation in a negotiated deal being senior-managed by JPMorganand being priced on Thursday, following a retail order period on Wednesday. Insured by FSA, the bonds have underlying ratings of A1 from Moody's and A-plus from Standard & Poor's and Fitch, and are structured to mature from 2012 to 2028 with a term bond in 2033.
In Texas, San Antonio will issue $289 million of electric and gas system revenue bonds. Lehman Brothers will price the new-money sale on Thursday in a deal structured with serial bonds maturing from 2017 to 2032. It is expected to be rated Aa1 by Moody's, AA by Standard & Poor's, and AA-plus by Fitch.
Meanwhile, one of the largest deals in the competitive market will be a $400 million GO offering from Clark County, Nev., scheduled for Wednesday. The bonds are structured to mature from 2011 to 2038 and have outstanding ratings of Aa1 from Moody's and AA-plus from Standard & Poor's.
Among the other competitive deals on tap, the Bellevue School District #405in Washington will sell GOs tomorrow in a deal that totals $125.2 million. The bonds, which mature from 2009 to 2027, have underlying ratings of Aa1 from Moody's and AA-plus from Standard & Poor's.
Arlington, Va., will also enter the competitive market tomorrow with a $111.1 million sale of GO public improvement bonds that are structured to mature from 2009 to 2028 and have natural triple-A ratings from Standard & Poor's and Moody's.
In addition, Prince George's County, Md., will bring $110 million of its GO consolidated public improvement bonds to market on Wednesday. Rated Aa1 by Moody's and A by Fitch, the bonds are structured to mature from 2009 to 2028.
